PawnMaster Blog

What Happens to Your Scrap Jewelry After It Leaves Your Shop?

Most, if not all, pawn shop collect and bin their scrap jewelry and eventually send this collection off to a refiner. If you've dealt in scrap jewelry before, there are a couple of words that you've definitely heard when it's time to send your scrap off to your refiner; smelt and assay. Do you know the difference between these techniques and which each accomplishes? Jack Brown of Mid-State Recycling & Refining shared this video with PawnMaster that goes over the two most popular refinement techniques and how Mid-State helps their customers get the most out of their scrap jewelry and metals.

Markets for gold and silver are crazy

Markets for gold and silver are crazy as of late. $25 x 2 day swings up and down. As I've said before, it's like an elevator but there is no "definitely"... Especially when you're ready to settle a lot or hedge when shipping.

Keep an eye on the US dollar, stock markets, job markets, fed talks (interest), President Trump, Democratic Party, unruly activity both overseas and in the US. They will all have an impact on where metals will move -- up, down or remain flat. It's a Friday, as I'm writing this and markets are up $5 - used to be a "profit taking day" for traders for their weekend ca$h. It doesn't roll like that any longer.

Scrapping

"I'm waiting on $1,250 price."

"I've only got 500 dwt."

"I'm flush with cash now from tax time."

"I need diamonds back for National."

When is it time to scrap? It's time to scrap when it's right for you. Everyone has LOTS going on in their lives and shops but if your gold or silver is not selling, you need money, metals have come out of pawn or the price is right; it's the right time.

I have personally always told my clients when it comes to price, "You're never going to hit the absolute high in the market - take the price when you feel like you want/need to move on materials and go on to the next thing on your daily to do list." You'll have more gold in the future, it's what you do. Remember, metals markets are like an elevator, they'll go up and they'll go down.

Don't be afraid to call, text or email your Rep... Communication is always key. Keep in mind, no one will ever know what the price will do from minute-to- minute, day-to-day. Sometimes you have to go with your gut. Sometimes you have to follow the dollar, activities overseas, etc. I watch metals by the second, most hours of the day and I am constantly reading articles and watching reports on TV. My responsibility is my clientele and advising as best I can but with regards to the market, sometimes you just have to get lucky.

This is an important point I'd like to go over. When you lock or hedge or price (gold, for example) and "shake hands" on a price with your refiner, that is a binding deal. If you hedge gold, silver etc. with your refiner; know that it can and does go down as easily as it goes up. Commitment and trust has to be mutual with every transaction. If you lock 10 toz at $1,250; your first 10 toz of your lot will be priced at $1,250. If the market goes up - your first 10 toz are still at $1,250. If the market goes down to $1,200; your first 10 toz are still going to be priced at $1,250. The balance and what to do should be discussed with your Rep. You can price at settlement, consign or even take bullion back - you should always have options and you should know them.

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